Revenue Performance - Off-premise sales more than doubled compared to the prior year, significantly contributing to revenue growth[170] - Restaurant revenue decreased by $435.4 million, or 33.8%, to $854.1 million in 2020 compared to 2019, driven by a 28.5% decrease in comparable restaurant revenue and $105.3 million from permanently closed restaurants[188] - Total revenues for the year ended December 27, 2020, were $868,715 thousand, a decrease of 34.0% compared to $1,315,014 thousand for the year ended December 29, 2019[266] - Restaurant revenue decreased to $854,136 thousand from $1,289,521 thousand, reflecting a decline of 33.8% year-over-year[266] - Franchise revenue decreased by $8.6 million, or 49.4%, primarily due to temporary abatement of royalty fees and lower revenues at franchisee restaurants during 2020[197] - Franchise revenue fell to $8.9 million in 2020 from $17.5 million in 2019, largely due to temporary abatement of franchise payments during the pandemic[330] Cost Management - The company reduced its menu by over one-third, resulting in annual savings of over $2 million[170] - Implemented a new management labor structure, achieving approximately $14 million in annual savings excluding labor savings from closed restaurants[170] - Achieved a permanent annual reduction in general and administrative expenses by more than 10%, approximately $10 million[170] - Labor costs increased to 39.0% of restaurant revenue in 2020, up 360 basis points from 35.4% in 2019, primarily due to sales deleverage and higher hourly wage rates[200] - Other operating costs as a percentage of restaurant revenue increased by 480 basis points to 19.3% in 2020, driven by higher third-party delivery fees and sales deleverage impacts[201] - Occupancy costs increased to 11.7% of restaurant revenue in 2020, up 300 basis points from 8.7% in 2019, primarily due to sales deleverage[202] Financial Position - As of February 21, 2021, the company had approximately $122 million of liquidity, including cash on hand and available borrowing capacity[177] - Cash and cash equivalents decreased by $13.9 million to $16.1 million as of December 27, 2020, with total liquidity of approximately $128 million[217] - Total current assets decreased to $86,908 thousand from $105,487 thousand, a decline of 17.5% year-over-year[264] - Total liabilities decreased slightly to $854,026 thousand from $877,060 thousand, a reduction of 2.6%[264] - The company’s cash and cash equivalents decreased to $16,116 thousand from $30,045 thousand, a decline of 46.4%[264] - The company’s retained earnings dropped significantly to $77,198 thousand from $353,266 thousand, a decrease of 78.1%[264] Impairments and Losses - Net loss was $276.1 million in 2020, with diluted loss per share of $19.29, compared to a net loss of $7.9 million and diluted loss per share of $0.61 in 2019[188] - The company recognized a non-cash impairment charge of $21.7 million in 2020 due to the impairment of 40 company-owned restaurants as a result of the COVID-19 pandemic[240] - The company recognized a goodwill impairment charge of $95.4 million due to the COVID-19 pandemic, reflecting the excess of carrying value over fair value[299] - Goodwill and asset impairments amounted to $122.354 million in 2020, significantly higher than $15.094 million in 2019[271] - The company recorded a loss of $5.5 million related to the exit of company-owned restaurants in Canada, impacting stockholders' equity[316] Future Outlook - The company expects Donatos® to generate annual pizza sales of more than $60 million and profitability of over $25 million by 2023[184] - The company plans to add Donatos® to approximately 120 restaurants in 2021, bringing the total to around 200 by year-end[184] - The company anticipates mid-to-high single-digit comparable restaurant revenue growth in 2021, driven by recovery in Western markets and pent-up demand for casual dining[190] - The company expects capital expenditures of $45 million to $55 million in 2021, including investments in maintaining restaurants and expanding Donatos® to approximately 120 locations[190] Debt and Financing - Total debt outstanding decreased by $36.2 million to $170.6 million at December 27, 2020, due to net repayments on the credit facility[227] - The Company replaced its prior credit facility with a new agreement providing for a total borrowing capacity of $300 million[357] - The Company was in compliance with its debt covenants as of December 27, 2020, despite uncertainties caused by the COVID-19 pandemic[363] - The Company has amended its credit facility to increase maximum leverage and suspend certain financial covenants for the first two fiscal quarters of 2021[327] Operational Changes - The new TGX hospitality model improved speed of service and overall guest satisfaction scores, contributing to enhanced dining experiences[174] - The company temporarily suspended its share repurchase program effective March 14, 2020, due to the COVID-19 pandemic, with restrictions on repurchases until at least the first fiscal quarter of 2022[230] - The company negotiated rent concessions with landlords for over 75% of its leases, resulting in a $8.6 million remeasurement to increase lease liabilities and right-of-use assets[320][322]